China CEOs Backing Obama's Insistence Yuan Rises
Bloomberg:
China CEOs Join Obama in Backing Yuan Rise Chinese executives are joining U.S. President Barack Obama
in backing a stronger yuan, even as Premier Wen Jiabao says the currency isn’t undervalued.
March 24 (Bloomberg) -- Chinese executives are joining U.S. President Barack Obama in backing a stronger yuan, even as Premier Wen Jiabao says the currency isn’t undervalued.
Yang Yuanqing, chief executive officer of Beijing-based computer maker Lenovo Group Ltd., said gains would boost consumers’ purchasing power. Qin Xiao, chairman of China Merchants Bank Co., said an end to the yuan’s 20-month peg to the dollar would let lenders set market-based interest rates. Chen Daifu, chairman of Hunan Lengshuijiang Iron & Steel Group Co., said a stronger currency would cut import costs.
The remarks are significant because it’s the first time so many executives at state-controlled enterprises have spoken publicly in favor of appreciation since China pegged the yuan at 6.8 per dollar in July 2008 to protect exporters, said Lee Boon Keng, deputy chief investment officer at Bank Julius Baer & Co. in Singapore. The comments are at odds with Premier Wen, who said criticizing the peg amounts to “protectionism,” in a March 14 response to sanction demands from U.S. lawmakers.
China CEOs Join Obama in Backing Yuan Rise Chinese executives are joining U.S. President Barack Obama
in backing a stronger yuan, even as Premier Wen Jiabao says the currency isn’t undervalued.
March 24 (Bloomberg) -- Chinese executives are joining U.S. President Barack Obama in backing a stronger yuan, even as Premier Wen Jiabao says the currency isn’t undervalued.
Yang Yuanqing, chief executive officer of Beijing-based computer maker Lenovo Group Ltd., said gains would boost consumers’ purchasing power. Qin Xiao, chairman of China Merchants Bank Co., said an end to the yuan’s 20-month peg to the dollar would let lenders set market-based interest rates. Chen Daifu, chairman of Hunan Lengshuijiang Iron & Steel Group Co., said a stronger currency would cut import costs.
The remarks are significant because it’s the first time so many executives at state-controlled enterprises have spoken publicly in favor of appreciation since China pegged the yuan at 6.8 per dollar in July 2008 to protect exporters, said Lee Boon Keng, deputy chief investment officer at Bank Julius Baer & Co. in Singapore. The comments are at odds with Premier Wen, who said criticizing the peg amounts to “protectionism,” in a March 14 response to sanction demands from U.S. lawmakers.